Short Position

Definition - What does Short Position mean?

A short position refers to a trade that will profit if a specific currency declines in value relative to other currencies. A short position usually refers to multiple trades that have been placed to profit from the target currency’s decline relative to other currencies. The concept of a short position is not an ideal fit for currency trading, but it is frequently used nonetheless.

ForexDictionary explains Short Position

Every forex trade is a combination of a short position in one currency and a long position in another. Because of this, traders usually reserve the term short position to refer to a large bet against the future value of a specific currency. This may mean a large amount of money using a single currency pair or a large number of trades shorting the target currency against other currencies that it is paired with.